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THE DUKE ENDOWMENT 

ESTABLISHED BY 

JAMES B. DUKE 


360.9T3 

DStXi. 


UNIVERSITY 
OF FLORIDA 
LIBRARY 






THE DUKE ENDOWMENT 

ESTABLISHED BY 
JAMES B. DUKE 




Indenture of James B. Duke 

Establishing 

The Duke Endowment 

With Provisions of the Will 
AND A Trust of Mr. Duke 
Supplementing the Same 

4 - 


Also an Address 

By William R. Perkins 

Personal Counsel of Mr. Duke 


On the Origin, Nature and Purpose of 
The Duke Endowment 


3 (iO. 973 


FOREWORD 


The Duke Endowment was created by trust indenture exe- 
cuted by James B. Duke on December 11, 1924, by which he 
conveyed for its purposes shares of stock in various corporations 
as therein particularly set forth. 

On the same day Mr. Duke executed his will, by the eighth, 
tenth and eleventh items of which, as changed by subsequent 
codicil, he very greatly augmented the properties of The Duke 
Endowment. 


In addition, at the same time, Mr. Duke created a second 
trust, the provisions of which may hereafter, but have not as 
yet, still further increase the properties and income of The 
Duke Endowment. 

This pamphlet reproduces these provisions by Mr. Duke for 
his philanthropy. 

The income of The Duke Endowment from its creation to 
date, came 39.16% from stock held by it in the Duke Power 
Company and 60.84% from other sources. 


The Duke Endowment, from its creation through the year 
1931, had made the following distribution of income, all within 
the States of North Carolina and South Carolina: 


For Superannuated Preachers 

For Rural Churches 

For Care of Orphans 

For Hospitalization 

For Operating Educational Institutions 


$160,541.50 

$520,924.55 

$672,422.47 

$4,461,582.49 

$4,627,194.81 


July 13, 1932. 


7/s's'a 


Digitized by the Internet Archive 
in 2016 with funding from 

University of Florida, George A. Smathers Libraries 


https://archive.org/details/indentureofjamesOOslsn 


THE 

DUKE ENDOWMENT INDENTURE 


This Indenture made in quadruplicate this 
11th day of December, 1924, by and between 
James B. Duke, residing at Duke Farms, near 
Somerville, in the County of Somerset, and State 
of New Jersey, United States of America, party 
of the first part, and Nanaline H. Duke, of Som- 
erville, N. J., George G. Allen, of Hartsdale, N. 
Y., William R, Perkins, of Montclair, N. J., 
William B. Bell, of New York City, N. Y., 
Anthony J. Drexel Biddle, Jr., of New York 
City, N. Y., Walter C. Parker, of New Rochelle, 
N. Y., Alex. H. Sands, Jr., of Montclair, N. J., 
William S. Lee, of Charlotte, N. C., Charles I. 
Burkholder, of Charlotte, N. C., Norman A. 
Cocke, of Charlotte, N. C., Edward C. Mar- 
shall, of Charlotte, N. C. and Bennette E. 
Geer, of Greenville, S. C. as trustees and their suc- 
cessors as trustees under and in accordance with the 
terms of this Indenture, to be known as the Board 
of Trustees of this Endowment, parties of the sec- 
ond part. 


2 The Duke Endowment 

WITNESSETH : 

That in order to efifectuate the trusts hereby 
created, the first party has given, assigned, trans- 
ferred and delivered, and by these presents does 
give, assign, transfer and deliver, the following 
property, to wit: 

122,647 Shares of Stock of Duke Power Com- 
pany, a corporation organized and existing 
under the laws of the State of New Jersey. 

100.000 Ordinary Shares of the Stock of British- 
American Tobacco Company, Limited, a 
corporation organized and existing under 
the laws of Great Britain. 

75.000 Shares of the Common “B” Stock of 
R. J. Reynolds Tobacco Company, a cor- 
poration organized and existing under the 
laws of said State of New Jersey. 

5.000 Shares of the Common Stock of George 
W. Helme Company, a corporation organ- 
ized and existing under the laws of said 
State of New Jersey. 

12,325 Shares of the Stock of Republic Cotton 
Mills, a corporation organized and existing 
under the laws of the State of South 
Carolina. 


The Indenture 


3 


7,935-3/10 Shares of the Common Stock of Jud- 
son Mills, a corporation organized and ex- 
isting under the laws of said State of South 
Carolina. 

unto said trustees and their successors as trustees 
hereunder, in trust, to be held, used, managed, ad- 
ministered and disposed of, as well as all additions 
and accretions thereto and all incomes, revenues 
and profits thereof and therefrom, forever for the 
charitable purposes, in the manner and upon the 
terms herein expressly provided, and not other- 
wise, namely : 

First. 

The trust established by this Indenture is hereby 
denominated The Duke Endowment, and shall 
have perpetual existence. 

Second. 

Each trustee herein named, as well as each trus- 
tee selected hereunder, shall be and remain a 
trustee so long as such trustee shall live and con- 
tinue mentally and physically capable of perform- 
ing the duties of a trustee hereunder, subject to 
resignation and to removal as hereinafter stated. 
The number of trustees within two years from the 


4 


The Duke Endowment 


date of this Indenture shall be increased to, and 
thereafter remain at, fifteen, such increase being 
made by vote of the trustees at any meeting. He 
suggests, but does not require, that, so far as prac- 
ticable, no one may be selected trustee if thereby at 
such time a majority of the trustees be not natives 
and/or residents of the States of North Carolina 
and/or South Carolina. It is the wish of the 
party of the first part, and he so directs, that 
his daughter, Doris Duke, upon attaining the age 
of twenty-one years, shall be made a trustee here- 
under, for that purpose being elected to fill any 
vacancy then existing, or, if there be no such vac- 
ancy, added to the trustees thereby making the 
number of trustees sixteen until the next occur- 
ring of a vacancy, whereupon the number of trus- 
tees shall again become and remain fifteen. 

Subject to the terms of this Indenture, the trus- 
tees may adopt and change at any time rules and 
regulations which shall govern in the management 
and administration of the trust and trust property. 

Meetings of the trustees shall be held at least ten 
times in each calendar year at such time and place 
and upon such notice as the rules and regulations 
may provide. Other meetings of the trustees may be 
held upon the call in writing of the chairman or a 
vice-chairman or any three trustees given in ac- 


The Indenture 


5 


cordance with the rules and regulations, at such 
place and time and for such purpose as may be 
specified in the call. A majority of the then trustees 
shall constitute a quorum at any such meeting, but 
less than a majority may adjourn any such meeting 
from time to time and from place to place until a 
quorum shall be present. The affirmative vote of 
the majority of a quorum shall be necessary and 
sufficient at any such meeting to authorize or ratify 
any action by the trustees hereunder, except as 
herein otherwise expressly provided. Written rec- 
ords, setting forth all action taken at said meetings 
and the voting thereon, shall be kept in a perma- 
nent minute book of the trustees, and shall be signed 
by each trustee present at the meeting. 

The trustees shall select annually from their 
number a chairman and two vice-chairmen, and a 
secretary and a treasurer, who need not be trustees. 
Such officers shall hold office for one year and 
thereafter until their respective successors shall be 
selected. The compensation of the secretary and 
treasurer shall be that fixed by the trustees. 

The trustees shall establish an office, which may 
be changed from time to time, which shall be 
known as the principal office of this trust, and at it 
shall be kept the books and papers other than 
securities relating to this trust. 


6 


The Duke Endowment 


By the affirmative vote of a majority of the then 
trustees any officer, and by the affirmative vote of 
three-fourths of the then trustees any trustee, may 
be removed for any cause whatever at any meeting 
of the trustees called for the purpose in accordance 
with the rules and regulations. 

Vacancies occurring among the trustees from 
any cause whatever (for which purpose an increase 
in the number of trustees shall be deemed to cause 
vacancies to the extent of such increase in number 
of trustees) may be filled by the remaining trustees 
at any meeting of the trustees, and must be so filled 
within six months after the vacancy occurs; pro- 
vided that no person (except said Doris Duke) 
shall remain or become a trustee hereunder who 
shall not be or at once become a trustee under the 
trust this day being created by the party of the first 
part by Indenture which will bear even date here- 
with for his said daughter and his kin and their de- 
scendants, so long as said latter trust shall be in 
existence. 

Each trustee shall be paid at the end of each 
calendar year one equal fifteenth part of three per 
cent of the incomes, revenues and profits received 
by the trustees upon the trust properties and estate 
during such year, provided that if any trustee by 
reason of death, resignation, or any other cause, 


The Indenture 


7 


shall have served during only a part of such year, 
there shall be paid to such trustee, if alive, or if 
such trustee be dead then to the personal represen- 
tatives of such trustee, such a part of said one-fif- 
teenth as the time during which said trustee served 
during such year shall bear to the whole of such 
year, such payment to be in full for all services as 
trustee hereunder and for all expenses of the trus- 
tees. In the event that any trustee shall serve in any 
additional capacity (other than as chairman or 
vice-chairman) the trustees may add to the forego- 
ing compensation such additional compensation as 
the trustees may think such trustee should receive 
by reason of serving in such additional capacity. 

No act done by any one or more of the trustees 
shall be valid or binding unless it shall have been 
authorized or until it shall be ratified as required 
by this Indenture. 

The trustees are urged to make a special effort 
to secure persons of character and ability, not only 
as trustees, but as officials and employees. 

Third. 

For the purpose of managing and administering 
the trust, and the properties and funds in the trust, 
hereby created, said trustees shall have and may 
exercise the following powers, namely: 


The Duke Endowment 


To manage and administer in all respects the 
trust hereby created and the properties and funds 
held and arising hereunder, in accordance with the 
terms hereof, obtaining and securing for such pur- 
pose such assistants, office space, force, equipment 
and supplies, and any other aid and facilities, upon 
such terms, as the trustees may deem necessary from 
time to time. 

To hold, use, manage, administer and dispose of 
each and every of the properties which at any time, 
and from time to time, may be held in this trust, 
and to collect and receive the incomes, revenues 
and profits arising therefrom and accruing thereto, 
provided that said trustees shall not have power to 
dispose of the whole or any part of the share capital 
(or rights of subscription thereto) of Duke Power 
Company, a New Jersey corporation, or of any 
subsidiary thereof, except upon and by the affirma- 
tive vote of the total authorized number of trustees 
at a meeting called for the purpose, the minutes of 
which shall state the reasons for and terms of such 
sale. 

To invest any funds from time to time arising or 
accruing through the receipt and collection of in- 
comes, revenues and profits, sale of properties, or 
otherwise, provided the said trustees may not lend 
the whole or any part of such funds except to said 


The Indenture 


9 


Duke Power Company, nor may said trustees in- 
vest the whole or any part of such funds in any 
property of any kind except in securities of said 
Duke Power Company, or of a subsidiary thereof, 
or in bonds validly issued by the United States of 
America, or by a State thereof, or by a district, 
county, town or city which has a population in ex- 
cess of fifty thousand people according to the then 
last Federal census, which is located in the United 
States of America, which has not since 1900 de- 
faulted in the payment of any principal or interest 
upon or with respect to any of its obligations, and 
the bonded indebtedness of which does not exceed 
ten per cent of its assessed values. Provided further 
that whenever the said trustees shall desire to invest 
any such funds the same shall be either lent to said 
Duke Power Company or invested in the securities 
of said Duke Power Company or of a subsidiary 
thereof, if and to the extent that such a loan or such 
securities are available upon terms and conditions 
satisfactory to said trustees. 

To utilize each year in accordance with the terms 
of this Indenture the incomes, revenues and profits 
arising and accruing from the trust estate for such 
year in defraying the post, expenses and charges in- 
curred in the management and administration of 
this trust and its funds and properties, and in ap- 


lo The Duke Endowment 

plying and distributing the net amount of such in- 
comes, revenues and profits thereafter remaining to 
and for the objects and purposes of this trust. 

As respects any year or years and any purpose or 
purposes for which this trust is created (except the 
payments hereinafter directed to be made to Duke 
University) the trustees in their uncontrolled dis- 
cretion may withhold the whole or any part of said 
incomes, revenues and profits which would other- 
wise be distributed under the “Fifth” division 
hereof, and either ( 1 ) accumulate the whole or any 
part of the amounts so withheld for expenditures 
(which the trustees are hereby authorized to make 
thereof) for the same purpose in any future year 
or years, or (2) add the whole or any part of the 
amounts so withheld to the corpus of the trust, or 
(3) pay, apply and distribute the whole or any part 
of said amounts to and for the benefit of any one or 
more of the other purposes of this trust, or (4) pay, 
apply and distribute the whole or any part of said 
amounts to or for the benefit of any such like char- 
itable, religious or educational purpose within the 
State of North Carolina and/or the State of South 
Carolina, and/or any such like charitable hospital 
purpose which shall be selected therefor by the 
affirmative vote of three-fourths of the then trus- 
tees at any meeting of the trustees called for the 


The Indenture 


1 1 


purpose, complete authority and discretion in and 
for such selection and utilization being hereby 
given the trustees in the premises. 

By the consent of three-fourths of the then trus- 
tees expressed in a writing signed by them, which 
shall state the reasons therefor and be recorded in 
the minutes of the trustees, and not otherwise, the 
trustees may ( 1 ) cause to be formed under the laws 
of such state or states as may be selected by the trus- 
tees for that purpose a corporation or corporations 
so incorporated and empowered as that the said 
corporation or corporations can and will assume 
and carry out in whole or in part the trust hereby 
created, with the then officers and trustees hereof 
officers and directors thereof, with like powers and 
duties, and (2) convey, transfer and deliver to said 
corporation or corporations the whole or any part 
of the properties then held in this trust, to be held, 
used, managed, administered and disposed of by 
said corporation or corporations for any one or 
more of the charitable purposes expressed in this 
Indenture and upon all the terms and with all the 
terms, powers and duties expressed in this Inden- 
ture with respect to the same, provided that such 
conveyances, transfers and deliveries shall be upon 
such terms and conditions as that in case any such 
corporation or corporations shall cease to exist for 


12 


The Duke Endowment 


any cause the property so transferred shall forth- 
with revert and belong to the trustees of this trust 
and become a part of the corpus of this trust for all 
the purposes thereof. 

Said trustees shall have and may exercise, subject 
to the provisions of this Indenture, any and all 
other powers which are necessary or desirable in 
order to manage and administer the trust and the 
properties and funds thereof and carry out and per- 
form in all respects the terms of this Indenture ac- 
cording to the true intent thereof. 

Any assignment, transfer, bill of sale, deed, con- 
veyance, receipt, check, draft, note, or any other 
document of paper whatever, executed by or on be- 
half of the trustees, shall be sufficiently executed 
when signed by the person or persons authorized 
so to do by a resolution of the trustees duly adopted 
at any meeting and in accordance with the terms of 
such resolution. 

Fourth. 

The trustees hereunder are hereby authorized 
and directed to expend as soon as reasonably may 
be not exceeding Six Million Dollars of the corpus 
of this trust in establishing at a location to be se- 
lected by them within the State of North Carolina 
an institution of learning to be known as Duke Uni- 


The Indenture 


13 


versity, for such purpose to acquire such lands and 
erect and equip thereon such buildings according 
to such plans as the trustees may in their judgment 
deem necessary and adopt and approve for the pur- 
pose, to cause to be formed under the laws of such 
state as the trustees may select for the purpose a 
corporation adequately empowered to own and op- 
erate such properties under the name Duke Uni- 
versity as an institution of learning according to the 
true intent hereof, and to convey to such corpora- 
tion when formed the said lands, buildings and 
equipment upon such terms and conditions as that 
such corporation may use the same only for such 
purposes of such university and upon the same 
ceasing to be so used then the same shall forthwith 
revert and belong to the trustees of this trust as and 
become a part of the corpus of this trust for all of 
the purposes thereof. 

However, should the name of Trinity College, 
located at Durham, North Carolina, a body politic 
and incorporate, within three months from the date 
hereof (or such further time as the trustees hereof 
may allow) be changed to Duke University, then, 
in lieu of the foregoing provisions of this division 
“Fourth” of this Indenture, as a memorial to his 
father, Washington Duke, who spent his life in 
Durham and whose gifts, together with those of 


14 The Duke Endowment 

Benjamin N. Duke, the brother of the party of the 
first part, and of other members of the Duke fam- 
ily, have so largely contributed toward making pos- 
sible Trinity College at that place, he directs that 
the trustees shall expend of the corpus of this trust 
as soon as reasonably may be a sum not exceeding 
Six Million Dollars in expanding and extending 
said University, acquiring and improving such 
lands and erecting, removing, remodeling and 
equipping such buildings, according to such plans, 
as the trustees may adopt and approve for such pur- 
pose to the end that said Duke University may 
eventually include Trinity College as its under- 
graduate department for men, a School of Re- 
ligious Training, a School for Training Teachers, 
a School of Chemistry, a Law School, a Co-ordi- 
nate College for Women, a School of Business Ad- 
ministration, a Graduate School of Arts and 
Sciences, a Medical School and an Engineering 
School, as and when funds are available. 

Fifth. 

The trustees hereof shall pay, apply, divide and 
distribute the net amount of said incomes, revenues 
and profits each calendar year as follows, to wit : 

Twenty per cent of said net amount shall be re- 
tained by said trustees and added to the corpus of 


The Indenture 


15 


this trust as a part thereof for the purpose of in- 
creasing the principal of the trust estate until the 
total aggregate of such additions to the corpus of 
the trust shall be as much as Forty Million Dollars. 

Thirty-two per cent of said net amount not re- 
tained as aforesaid for addition to the corpus of this 
trust shall be paid to that Duke University for 
which expenditures of the corpus of the trust shall 
have been made by the trustees under the 
“Fourth” division of this Indenture so long as its 
name shall be Duke University and it shall not be 
operated for private gain, to be utilized by its 
Board of Trustees in defraying its administration 
and operating expenses, increasing and improving 
its facilities and equipment, the erection and en- 
largement of buildings and the acquisition of addi- 
tional acreage for it, adding to its endowment, or in 
such other manner for it as the Board of Trustees 
of said institution may from time to time deem to 
be to its best interests, provided that in case such 
institution shall incur any expense or liability be- 
yond provision already in sight to meet same, or in 
the judgment of the trustees under this Indenture 
be not operated in a manner calculated to achieve 
the results intended hereby, the trustees under this 
Indenture may withhold the whole or any part of 
such percentage from said institution so long as 


i6 


The Duke Endowment 


such character of expense or liabilities or opera- 
tions shall continue, such amounts so withheld to be 
in whole or in part either accumulated and ap- 
plied to the purposes of such University in any 
future year or years, or utilized for the other 
objects of this Indenture, or added to the corpus 
of this trust for the purpose of increasing the 
principal of the trust estate, as the trustees may 
determine. 

Thirty-two per cent of said net amount not re- 
tained as aforesaid for addition to the corpus of this 
trust shall be utilized for maintaining and securing 
such hospitals, not operated for private gain, as the 
said trustees, in their uncontrolled discretion, may 
from time to time select for the purpose and are 
located within the States of North Carolina and/or 
South Carolina, such utilization to be exercised in 
the following manner, namely; (a) By paying to 
each and every such hospital, whether for white or 
colored, and not operated for private gain, such 
sum (not exceeding One Dollar) per free bed per 
day for each and every day that said free bed may 
have been occupied during the period covered by 
such payment free of charge by patients unable to 
pay as the amount available for this purpose here- 
under will pay on a pro rata basis; and (b) in the 
event that said amount in any year shall be more 


The Indenture 


17 

than sufficient for the foregoing purpose, the whole 
or any part of the residue thereof may be expended 
by said trustees in assisting in the erection and/or 
equipment within either or both of said States of 
any such hospital not operated for private gain, 
payment for this purpose in each case to be in such 
amount and on such terms and conditions as the 
trustees hereof may determine. In the event that 
said amount in any year be more than sufficient for 
both of the aforesaid purposes, the trustees in their 
uncontrolled discretion may pay and expend the 
whole or any part of the residue thereof in like 
manner for maintaining and securing hospitals not 
operated for private gain in any other State or 
States, giving preference, however, to those States 
contiguous to the States of North Carolina and 
South Carolina. And said trustees as respects any 
year may exclude from participation hereunder 
any hospital or hospitals which the trustees in their 
uncontrolled discretion may think so financed as 
not to need, or so maintained and operated as not 
to deserve, inclusion hereunder. 

Five per cent of said net amount not retained as 
aforesaid for addition to the corpus of the trust 
shall be paid to Davidson College (by whatever 
name it may be known) now located at Davidson, 
in the State of North Carolina, so long as it shall 


i8 


The Duke Endowment 


not be operated for private gain, to be utilized by 
said institution for any and all of the purposes 
thereof. 

Five per cent of said net amount not retained as 
aforesaid for addition to the corpus of the trust 
shall be paid to Furman University (by whatever 
name it may be known) now located at Greenville, 
in the State of South Carolina, so long as it shall 
not be operated for private gain, to be utilized by 
said institution for any and all of the purposes 
thereof. 

Four per cent of said net amount not retained as 
aforesaid for addition to the corpus of the trust 
shall be paid to the Johnson C. Smith University 
(by whatever name it may be known), an institu- 
tion of learning for colored people, now located at 
Charlotte, in said State of North Carolina, so long 
as it shall not be operated for private gain, to be 
utilized by said institution for any and all of the 
purposes thereof. 

Ten per cent of said net amount not retained as 
aforesaid for addition to the corpus of this trust 
shall be paid and distributed to and among such of 
those organizations, institutions, agencies and/or 
societies, whether public or private, by whatsoever 
name they may be known, not operated for private 
gain, which during such year in the judgment of 


The Indenture 


19 


said trustees have been properly operated as or- 
ganizations, institutions, agencies and/or societies 
for the benefit of white or colored whole or half 
orphans within the States of North Carolina 
and/or South Carolina, and in such amounts as 
between and among such organizations, institu- 
tions, agencies and/or societies as may be selected 
and determined as respects each year by said trus- 
tees in their uncontrolled discretion, all such pay- 
ments and distributions to be used by such organi- 
zations, institutions, agencies and/or societies 
exclusively for the benefit of such orphans. 

Two per cent of said net amount not retained as 
aforesaid for addition to the corpus of the trust 
shall be paid and expended by the trustees for the 
care and maintenance of needy and deserving su- 
perannuated preachers and needy and deserving 
widows and orphans of deceased preachers who 
shall have served in a Conference of the Metho- 
dist Episcopal Church, South (by whatever name 
it may be known) located in the State of North 
Carolina. 

Six per cent of said net amount not retained as 
aforesaid for addition to the corpus of the trust 
shall be paid and expended by the trustees in as- 
sisting (that is, in giving or lending in no case more 
than fifty per cent of what may be required for the 


20 


The Duke Endowment 


purpose) to build Methodist churches under and 
connected with a Conference of the Methodist 
Episcopal Church, South (by whatever name it 
may be known) located in the State of North Car- 
olina, but only those churches located in the 
sparsely settled rural districts of the State of North 
Carolina, and not in any city, town or hamlet, in- 
corporated or unincorporated, having a population 
in excess of fifteen hundred people according to the 
then last Federal census. 

Four per cent of said net amount not retained as 
aforesaid for addition to the corpus of the trust 
shall be paid and expended by the trustees in as- 
sisting (that is, in giving or lending in no case 
more than fifty per cent of what may be required 
for the purpose) to maintain and operate the 
Methodist churches of such a Conference which 
are located within the sparsely settled rural dis- 
tricts of the State of North Carolina, and not in 
any city, town or hamlet, incorporated or unincor- 
porated, having a population in excess of fifteen 
hundred people according to the then last Federal 
census. 

Expenditures and payments made hereunder for 
maintaining such superannuated preachers, and 
such widows and orphans, as well as for assisting 
to build, maintain and operate such Methodist 


The Indenture 


21 


churches, shall be in the uncontrolled discretion of 
the trustees as respects the time, terms, place, 
amounts and beneficiaries thereof and therefor; 
and he suggests that such expenditures and pay- 
ments be made through the use of said Duke Uni- 
versity as an agency for that purpose so long as 
such method is satisfactory to the trustees hereof. 

Sixth. 

Subject to the other provisions of this Indenture, 
said trustees may pay, apply, divide and distribute 
such incomes, revenues and profits at such time or 
times as may in their discretion be found best suited 
to the due administration and management of this 
trust, but only for the purposes allowed by this In- 
denture. 

In the event that any stock dividend or rights 
shall be declared upon any of the stock held under 
this instrument, the said stock and rights distrib- 
uted pursuant thereto shall for all purposes be 
treated and deemed to be principal even though 
the said stock dividend and/or rights shall repre- 
sent earnings. 

No trustee hereby appointed and no trustee se- 
lected in pursuance of any powers herein contained 
shall be required to give any bond or other security 


22 


The Duke Endowment 


for the performance of his, her or its duties as such 
trustee, nor shall any trustee be required to reserve 
any part of the income of any investment or security 
for the purpose of creating a sinking fund to retire 
or absorb the premium in the case of bonds or any 
other securities w^hatever taken over, purchased or 
acquired by the trustees at a premium. 

The term “subsidiary” as herein used shall mean 
any company at least fifty-one per cent of the vot- 
ing share capital of which is owned by said Duke 
Power Company. 

The party of the first part hereby expressly re- 
serves the right to add to the corpus of the trust 
hereby established by way of last will and testament 
and/or otherwise, and in making such additions to 
stipulate and declare that such additions and the 
incomes, revenues and profits accruing from such 
additions shall be used and disposed of by the trus- 
tees for any of the foregoing and/or any other 
charitable purposes, with like effect as if said ad- 
ditions, as well as the terms concerning same and 
the incomes, revenues and profi|s thereof, had been 
originally incorporated herein. In the absence of 
any such stipulation or declaration each and every 
such addition shall constitute a part of the corpus 
of this trust for all of the purposes of this Inden- 
ture. 


The Indenture 23 

Seventh. 

The party of the first part hereby declares for the 
guidance of the trustees hereunder : 

For many years I have been engaged in the de- 
velopment of water powers in certain sections of 
the States of North Carolina and South Carolina. 
In my study of this subject I have observed how 
such utilization of a natural resource, which other- 
wise would run in waste to the sea and not remain 
and increase as a forest, both gives impetus to in- 
dustrial life and provides a safe and enduring in- 
vestment for capital. My ambition is that the rev- 
enues of such developments shall administer to the 
social welfare, as the operation of such develop- 
ments is administering to the economic welfare, of 
the communities which they serve. With these 
views in mind I recommend the securities of the 
Southern Power System (the Duke Power Com- 
pany and its subsidiary companies) as the prime 
investment for the funds of this trust ; and I advise 
the trustees that they do not change any such in- 
vestment except in response to the most urgent and 
extraordinary necessity; and I request the trustees 
to see to it that at all times these companies be 
managed and operated by the men best qualified 
for such a service. 


24 


The Duke Endowment 


I have selected Duke University as one of the 
principal objects of this trust because I recognize 
that education, when conducted along sane and 
practical, as opposed to dogmatic and theoretical, 
lines, is, next to religion, the greatest civilizing in- 
fluence. I request that this institution secure for its 
officers, trustees and faculty men of such outstand- 
ing character, ability and vision as will insure its 
attaining and maintaining a place of real leader- 
ship in the educational world, and that great care 
and discrimination be exercised in admitting as 
students only those whose previous record shows a 
character, determination and application evincing 
a wholesome and real ambition for life. And I ad- 
vise that the courses at this institution be arranged, 
first, with special reference to the training of 
preachers, teachers, lawyers and physicians, be- 
cause these are most in the public eye, and by pre- 
cept and example can do most to uplift mankind, 
and, second, to instruction in chemistry, economics 
and history, especially the lives of the great of 
earth, because I believe that such subjects will most 
help to develop our resources, increase our wisdom 
and promote human happiness. 

I have selected hospitals as another of the prin- 
cipal objects of this trust because I recognize that 
they have become indispensable institutions, not 


The Indenture 


25 

only by way of ministering to the comfort of the 
sick but in increasing the efficiency of mankind and 
prolonging human life. The advance in the science 
of medicine growing out of discoveries, such as in 
the field of bacteriology, chemistry and physics, 
and growing out of inventions such as the X-ray 
apparatus, make hospital facilities essential for ob- 
taining the best results in the practice of medicine 
and surgery. So worthy do I deem the cause and so 
great do I deem the need that I very much hope 
that the people will see to it that adequate and con- 
venient hospitals are assured in their respective 
communities, with especial reference to those who 
are unable to defray such expenses of their own. 

I have included orphans in an effort to help those 
who are most unable to help themselves, a worthy 
cause, productive of truly beneficial results in 
which all good citizens should have an abiding in- 
terest. While in my opinion nothing can take the 
place of a home and its influences, every effort 
should be made to safeguard and develop these 
wards of society. 

And, lastly, I have made provision for what I 
consider a very fertile and much neglected field for 
useful help in religious life, namely, assisting by 
way of support and maintenance in those cases 
where the head of the family through devoting his 


26 


The Duke Endowment 


life to the religious service of his fellow men has 
been unable to accumulate for his declining years 
and for his widow and children, and assisting in the 
building and maintenance of churches in rural dis- 
tricts where the people are not able to do this prop- 
erly for themselves, believing that such a pension 
system is a just call which will secure a better grade 
of service and that the men and women of these 
rural districts will amply respond to such assistance 
to them, not to mention our own Christian duty re- 
gardless of such results. Indeed, my observation 
and the broad expanse of our territory make me be- 
lieve it is to these rural districts that we are to look 
in large measure for the bone and sinew of our 
country. 

From the foregoing it will be seen that I have 
endeavored to make provision in some measure for 
the needs of mankind along physical, mental and 
spiritual lines, largely confining the benefactions 
to those sections served by these water power devel- 
opments. I might have extended this aid to other 
charitable objects and to other sections, but my 
opinion is that so doing probably would be pro- 
ductive of less good by reason of attempting too 
much. I therefore urge the trustees to seek to ad- 
minister well the trust hereby committed to them 
within the limits set, and to this end that at least at 


The Indenture 


27 

one meeting each year this Indenture be read to 
the assembled trustees. 

Eighth. 

This Indenture is executed by a resident of the 
State of New Jersey in said State, is intended to be 
made, administered and given effect under and in 
accordance with the present existing laws and 
statutes of said State, notwithstanding it may be 
administered and the beneficiaries hereof may be 
located in whole or in part in other states, and the 
validity and construction thereof shall be deter- 
mined and governed in all respects by such laws 
and statutes. 

It being the purpose and intention of this Inden- 
ture that no part of the corpus or income of the 
trust estate hereby created shall ever for any cause 
revert to the party of the first part, or to his heirs, 
personal representatives or assigns, it is hereby de- 
clared that: (a) Each object and purpose of this 
trust shall be deemed and treated as separate and 
distinct from each and every other object and pur- 
pose thereof to the end that no provision of this 
trust shall be deemed or declared illegal, invalid 
or unenforceable by reason of any other provision 
or provisions of this trust being adjudged or de- 


28 


The Duke Endowment 


dared illegal, invalid or unenforceable; and that 
in the event of any one or more of the provisions 
of this trust being declared or adjudged illegal, in- 
valid or unenforceable that each and every other 
provision of this trust shall take effect as if the pro- 
vision or provisions so declared or adjudged to be 
illegal, invalid or unenforceable had never been 
contained in this Indenture; and any and all prop- 
erties and funds ■which ■would have been utilized 
under and pursuant to any provision so declared or 
adjudged illegal, invalid or unenforceable shall be 
utilized under and in accordance with the other 
provisions of this Indenture which shall not be de- 
clared or adjudged illegal, invalid or unenforce- 
able; and (b) in the event any beneficiary for 
which provision is herein made shall cease to exist 
for any cause whatever, then so much of the funds 
and properties of this trust as otherwise would be 
utilized for the same shall be thereafter utilized 
for the remaining objects and purposes of this trust. 

In Witness Whereof, the said James B. 
Duke, at his residence at Duke Farms in the State 
of New Jersey, has subscribed his name and affixed 
his seal to this Indenture, consisting with this page 
and the preceding and following pages of twenty- 
one pages, each page of which, except the follow- 


The Indenture 


29 


ing page, he has identified by signing his name on 
the margin thereof, all on the day and year first 
above written. 

James B. Duke (L.S.) 

Witnesses : 

Clarence E. Case 
Forrest Hyde 
Clarence E. Mares 


State of New J ersey ) . 

County of Somerset 

Be it remembered, that on this 1 1th day of De- 
cember, 1924, before me, a Notary Public of New 
Jersey, personally appeared JAMES B. Duke, who, 
I am satisfied, is the grantor named in the within 
Indenture and Deed of Trust dated December 
1 1th, 1924, and I having first made known to him 
the contents thereof, he did acknowledge that he 
signed, sealed and delivered the same as his vol- 
untary act and deed, for the uses and purposes 
therein expressed. 

Wm. R. Sutphen, 
Notary Public of N. J. 


30 


The Duke Endowment 


We, the undersigned, being the persons des- 
ignated in the within and foregoing Indenture as 
the trustees of the trust thereby created, do hereby 
accept said trust and undertake to act as trustees of 
the same as in said Indenture set forth. 

Nanaline H. Duke 

George G. Allen 

William R. Perkins 

William B. Bell 

Anthony J. Drexel Biddle, Jr. 

Walter C. Parker 

Alex. H. Sands, Jr. 

WiLLAM S. Lee 
Charles I. Burkholder 
Norman A. Cocke 
Edward C. Marshall 
Bennette E. Geer 


THE 

DORIS DUKE TRUST 


/ / 

By indenture dated December 11, 1924, and 
executed at Duke Farms in Somerset County, New 
Jersey, before William R. Sutphen, a Notary Pub- 
lic of New Jersey, Mr. James B. Duke created a 
trust which he denominated The Doris Duke Trust 
and which is to continue so long as any one or more 
of the following persons, namely, 

Doris Duke, daughter, Mary Duke Biddle, 
Mary Duke Biddle II, Anthony J. Drexel 
Biddle III, Angier Buchanan Duke, Jr., 
Anthony Newton Duke, Mary Lyon Stagg, 
Elizabeth Stagg Hackney, Mary Washing- 
ton Nicholson, John Mallory Hackney, Jr., 
James Stagg Hackney, Sterling Johnston 
Nicholson, Jr., Mary Washington Nicholson 
II, Clara Elizabeth Lyon McClamroch, 
George Leonidas Lyon, Jr., Mary Duke Lyon, 
E. Buchanan Lyon, Marion Noell Lyon, 
Laura Elizabeth Lyon, Washington Duke 
Lyon, Baxter Laurence Duke, Mabel Duke 

31 


32 


The Duke Endowment 


Goodall, Pearl Duke Bachmann, Mabel 
Duke Goodall II, and Martha Dulaney Bach- 
mann, 

who was living when the indenture was executed 
shall remain alive and for the period of twenty-one 
years immediately succeeding the death of the last 
survivor of them, unless sooner terminated by its 
other terms. 

Into this trust Mr. Duke placed $35,000 in cash 
and 2000 shares of Duke Power Company, a New 
Jersey corporation, and the will of Mr, Duke, here- 
inafter mentioned, by Item V bequeathed to this 
trust “All the shares of stock which I may own at 
my death of the Duke Power Company, a New Jer- 
sey corporation, and/or of any corporation fifty- 
one per cent of the voting share capital of which 
is owned by the said Duke Power Company at that 
time, if my said daughter Doris Duke or a lineal 
descendant of my said daughter be living at the 
time of my death; * * * The shares of stock to 
which said trust may become entitled by virtue of 
this item of my will shall be added to and become 
a part of the corpus of said trust.” 

As Doris Duke was living when her father died 
this provision of the will took effect. By it the trust 
got 


The Doris Duke Trust 


33 

125,904 shares of the capital stock of Duke 
Power Company 

2 shares of the common stock of South- 
ern Power Company 
2 shares of the common stock of Great 
Falls Power Company 

With respect to the payment and distribution of 
the principal and income of the trust the indenture 
provides : 

“Fourth. 

The trustees hereunder each year shall pay, ap- 
ply and distribute two-thirds of the net amount of 
the incomes, revenues and profits received from the 
funds and properties in this trust during such year 
up to and until the time when final payment and 
distribution is directed to be made of the one-third 
of the funds and properties of this trust under the 
terms of the “Fifth” division of this Indenture and 
the whole of the net amount of the incomes, rev- 
enues and profits, if any, received from the funds 
and properties in this trust during such year from 
and after such time ( 1 ) to the said Doris Duke so 
long as she shall live, and (2) after the death of 
said Doris Duke per capita, in equal portions, to 
and among the lineal descendant or descendants of 
the said Doris Duke who may be living at the time 


34 


The Duke Endowment 


of the making by the trustees of each particular 
payment and distribution thereof under this divi- 
sion of this Indenture so long as this trust shall con- 
tinue and a lineal descendant of said Doris Duke 
shall be living, but in no event longer than the last 
day of the said period of twenty-one years men- 
tioned and described in the “First” division of this 
Indenture. Upon the said last day of said period of 
twenty-one years mentioned and described in the 
“First” division of this Indenture, or upon it so 
happening that at any time theretofore neither said 
Doris Duke nor any lineal descendant of said Doris 
Duke shall be living, whichever of said contingen- 
cies shall first happen, this trust shall cease and 
terminate as to, and the trustees shall thereupon 
forthwith pay and distribute, two-thirds in value 
at that time of all the funds and properties then 
held in this trust in the event that the final payment 
and distribution of the one-third of the funds and 
properties of this trust shall not have been made 
prior to said time under the “Fifth” division of 
this Indenture, or the whole of the funds and prop- 
erties at said time held in this trust in the event that 
final payment and distribution prior to said time 
shall have been made of the one-third of the funds 
and properties of this trust under the terms of the 
“Fifth” division of this Indenture (1) per capita, 


The Doris Duke Trust 


35 

in equal portions, to and among the lineal descend- 
ant or descendants of the said Doris Duke then liv- 
ing, if any such there shall be; or (2), if there be 
no such lineal descendant then living, then into the 
trust which has been created and established by the 
party of the first part by Indenture bearing even 
date herewith wherein the trust thereby created is 
denominated The Duke Endowment, provided 
that no payment or distribution under this division 
of this Indenture shall be made of any accumula- 
tion of incomes, revenues and profits which may 
have been made by virtue of the “Sixth” division 
of this Indenture and/or of any incomes, revenues 
and profits of any such accumulation. 

“Fifth. 

The trustees hereunder each year shall pay, apply 
and distribute one-third of the net amount of the 
incomes, revenues and profits received from the 
funds and properties in this trust during such year 
up to and until the time when final payment and 
distribution is directed to be made of the two- 
thirds of the funds and properties of this trust 
under the terms of the “Fourth” division of this 
Indenture, and the whole of the net amount of the 
incomes, revenues and profits, if any, received from 
the funds and properties in this trust during such 


36 The Duke Endowment 

year from and after such time, per capita, in equal 
portions, to and among each of the following per- 
sons, namely ; said Mary Duke Biddle, the wife of 
Anthony J. Drexel Biddle, Jr.; said Mary Duke 
Biddle and Anthony J. Drexel Biddle III, the 
children of said Mary Duke Biddle; said Angier 
Buchanan Duke, Jr. and Anthony Newton 
Duke, children of Angier Buchanan Duke, de- 
ceased; said Mary Lyon Stagg, the widow of 
James E. Stagg; said Elizabeth Stagg Hack- 
ney, the wife of John Mallory Hackney and Mary 
Washington Nicholson, the wife of Sterling 
Johnston Nicholson, children of the said Mary 
Lyon Stagg; and John Mallory Hackney, Jr. 
and James Stagg Hackney, children of the said 
Elizabeth Stagg Hackney; said STERLING John- 
ston Nicholson, Jr. and Mary Washington 
Nicholson, children of the said Mary Washing- 
ton Nicholson; said Clara Elizabeth Lyon Mc- 
Clamroch, the wife of Roland Prince McClam- 
roch, George Leonidas Lyon, Jr. and Mary 
Duke Lyon, children of George Leonidas Lyon, 
deceased; said E. BUCHANAN Lyon, Marion 
Noell Lyon, Laura Elizabeth Lyon and 
Washington Duke Lyon, children of E. Bu- 
chanan Lyon, deceased; said Baxter Laurence 
Duke, Mabel Duke Goodall, the wife of H. R. 


The Doris Duke Trust 


37 

Goodall, and Pearl Duke Bachmann, the wife 
of Nathan L. Bachmann, children of Brodie Leon- 
idas Duke, deceased ; said Mabel Duke Goodall, 
the child of the said Mabel Duke Goodall; and 
said Martha Dulaney Bachmann, the child of 
said Pearl Duke Bachmann, and each and every 
of the lineal descendants of each and every of said 
persons, which persons and/or descendants may be 
living at the time of the making by the trustees of 
each particular payment and distribution thereof 
under this division of this Indenture so long as this 
trust shall continue and any one of said persons or 
a lineal descendant of any one of said persons shall 
be living, but in no event longer than the last day 
of the said period of twenty-one years mentioned 
and described in the “First” division of this In- 
denture. Upon the said last day of said period of 
twenty-one years mentioned and described in the 
“First” division of this Indenture, or upon it so 
happening that at any time theretofore neither any 
one of said persons nor any lineal descendant of any 
one of said persons shall be living, whichever of 
said contingencies shall first happen, this trust shall 
cease and terminate as to, and the trustees shall 
thereupon forthwith pay and distribute, one-third 
in value at that time of all the funds and properties 
then held in this trust in the event that the final pay- 


38 The Duke Endowment 

ment and distribution of the two-thirds of the funds 
and properties of this trust shall not have been 
made prior to said time under the “FOURTH” divi- 
sion of this Indenture or the whole of the funds and 
properties at said time held in this trust in the event 
that final payment and distribution prior to said 
time shall have been made of the two-thirds of the 
funds and properties of this trust under the terms 
of the “Fourth” division of this Indenture ( 1 ) 
per capita, in equal portions, to and among the 
lineal descendant or descendants then living of 
each and every of said persons, if any such there 
shall be, or (2) if there be no such lineal descend- 
ant then living, then into the trust which has been 
created and established by the party of the first part 
by Indenture bearing even date herewith wherein 
the trust thereby created is denominated The Duke 
Endowment, provided that no payment or dis- 
tribution under this division of this Indenture shall 
be made of any accumulation of incomes, revenues 
and profits which may have been made by virtue 
of the “Sixth” division of this Indenture and/or 
of any incomes, revenues and profits of any such 
accumulation. 

“Sixth, 

The trustees hereunder at any time and from 
time to time with respect to any beneficiary here- 


The Doris Duke Trust 39 

under so long as such beneficiary shall be under 
twenty-one years of age (but in no event subsequent 
to the last day of the period of twenty-one years 
mentioned and described in the “First” division 
of this Indenture), in the uncontrolled discretion 
of said trustees, may withhold and accumulate for 
such beneficiary the whole or any part of the in- 
comes, revenues and profits of this trust which, ex- 
cept for such withholding and accumulation, would 
be paid and distributed to such beneficiary, but 
with respect to said Doris Duke and her lineal de- 
scendants the party of the first part requests 
especially, but does not require, that said trustees 
do so withhold and accumulate hereunder beyond 
such amounts as the trustees hereof may think 
should be paid to the said Doris Duke and/or to 
her lineal descendants in order to provide liberally 
for their current needs. Each such accumulation, as 
well as the incomes, revenues and profits thereof, 
shall be separately kept and handled by said trus- 
tees as respects accounting, investment of funds, 
and otherwise, and the whole of such accumula- 
tions, incomes, revenues and profits shall be fully 
and finally paid, applied and distributed by said 
trustees as follows, namely : ( 1 ) to the beneficiary 
from whom it was so withheld upon such benefici- 
ary attaining the age of twenty-one years, or upon 


40 


The Duke Endowment 


the said last day of saia period of twenty-one years 
mentioned and described in the “First” division of 
this Indenture, whichever of said events shall first 
occur, if such beneficiary shall be then living; 
or (2) if such beneficiary shall not be then living, 
then upon the death of such beneficiary (a) in all 
respects in accordance with the laws and statutes of 
the State of New Jersey at the time of the death of 
such beneficiary to and among those persons who by 
said laws and statutes would inherit real estate then 
owned by such beneficiary and located in said State, 
had such beneficiary died intestate and a resident of 
said State, or (b), if there shall not be living at 
the time of the death of such beneficiary any person 
to whom payment and distribution may be made 
pursuant to subdivision (a) hereof, then into the 
trust which has been created and established by the 
party of the first part by Indenture bearing even 
date herewith wherein the trust thereby created is 
denominated The Duke Endowment; provided 
that the trustees hereunder, in their uncontrolled 
discretion, at any time and from time to time before 
the happening of any of said events, may pay 
and apply the whole or any part of any such 
accumulation, as well as of the incomes, rev- 
enues and profits thereof, to and for the support, 
education and maintenance of the beneficiary from 


The Doris Duke Trust 


41 


whom the same may have been withheld, in which 
event said full and final payment and distribution 
under the foregoing provision of this division of 
this Indenture shall be only of what may remain 
thereof at the time of the making of such full and 
final payment and distribution. This trust shall 
cease and terminate as respects each of said ac- 
cumulations as well as the incomes, revenues and 
profits thereof, ( 1 ) as and when such payment and 
distribution thereof shall be made under the terms 
of this division, or (2) , upon the last day of the said 
period of twenty-one years mentioned and de- 
scribed in the “First” division of this Indenture, 
whichever of said events shall first occur. 


THE WILL OF JAMES B. DUKE 

1 f 

The will of Mr. Duke is dated December 11th, 
1924, and the codicil thereto October 1st, 1925. 
Both were probated in common form before the 
Surrogate of Somerset County, New Jersey, Octo- 
ber 23rd, 1925. 

By Item VIII there is bequeathed to 
“the trust established by me by Indenture dated 
December 11, 1924, wherein said trust is denomi- 
nated The Duke Endowment, the sum of Ten Mil- 
lion Dollars, to be added to and become a part of 
the corpus of said trust estate and to be held, used, 
managed, administered and disposed of, as well as 
the incomes, revenues and profits arising therefrom 
and accruing thereto, by the trustees of said trust 
under and subject to all the terms of said trust in- 
denture, except that: (a) said trustees shall use and 
expend as soon as they reasonably can after the re- 
ceipt of said sum not exceeding Four Million Dol- 
lars thereof in erecting and equipping, at the Duke 
University mentioned and described in said trust, 
buildings suitable for a Medical School, Hospital 
and Nurses Home under the supervision of said 

43 


44 


The Duke Endowment 


trustees and in all respects as they may determine 
concerning the same, and the acquisition of such 
lands, if any, as may be needed for such purpose, 
said lands, buildings and equipment to be conveyed 
to and thereafter belong to said Duke University 
and operated by it; and (b) all the incomes, rev- 
enues and profits arising and accruing from the said 
Ten Million Dollars shall be utilized, paid, ap- 
plied and distributed each year by said trustees 
upon, subject to and in accordance with all the 
terms of said Indenture with respect to the pay- 
ment and distribution of a percentage of the in- 
comes, revenues and profits of said trust to and for 
said Duke University.” 

By Item X a trust is created with the same trus- 
tees, and practically the same powers, as those of 
The Doris Duke Trust. Into this trust is placed 
“one-third in value of said residuary estate and, in 
addition thereto, such a portion of said residuary 
estate as will in the judgment of my executors cer- 
tainly produce a net annual income of One Hun- 
dred Thousand Dollars from said portion.” 

As respects said “portion” it is provided : 

“The trustees of this trust each year shall pay, 
apply and distribute the net amount of the in- 


The Will of James B. Duke 45 

comes, revenues and profits arising and accruing 
from the said portion of said residuary estate to my 
said wife so long as she shall live, and upon the 
death of my said wife this trust shall cease and 
terminate as to said portion and any undistributed 
incomes, revenues and profits thereof, and said por- 
tion and all undistributed incomes, revenues and 
profits thereof, shall be paid, applied and distrib- 
uted by said trustee into the trust created and estab- 
lished by me by Indenture dated December 11 th, 
1924, wherein said trust is denominated The Duke 
Endowment.” 

As respects said “one-third in value” it is pro- 
vided : 

“The trustees of this trust each year shall pay and 
distribute the net amount of the incomes, revenues 
and profits arising and accruing from said one- 
third in value of said residuary estate, or so much 
thereof as may not then have been distributed 
under the terms of this trust, to my said daughter 
so long as she may live and after her death per 
capita, in equal portions, to and among the lineal 
descendants of my said daughter who may be living 
at the time of the making by the trustees of each 
particular payment and distribution thereof, so 
long as this trust shall continue after the death of 


The Duke Endowment 


46 

my said daughter and a lineal descendant of my 
said daughter shall be living, but in no event sub- 
sequent to the last day of the said twenty-one year 
period herein mentioned and described for the du- 
ration of this trust.” 

And said trustees shall pay and distribute the 
said one-third in value of said residuary estate as 
follows, namely: 

“(a) To my said daughter upon her attaining 
the age of twenty-one years one-third in value of 
all the funds and properties then constituting the 
same provided my said daughter shall attain such 
age; to my said daughter upon her attaining the 
age of twenty-five years one-half in value of all the 
funds and properties then constituting the undis- 
tributed residue of the same provided my said 
daughter shall attain such age; and to my said 
daughter upon her attaining the age of thirty years 
the whole of the funds and properties then consti- 
tuting the undistributed residue of the same, as 
well as any incomes, revenues and profits thereof 
which may not have been then distributed, pro- 
vided my said daughter shall attain such age. If at 
the time of my death my said daughter shall have 
attained any one or more of the above mentioned 
ages she shall thereupon become entitled to receive 


The IV ill of yames B. Duke ^\rj 

and said trustees, as soon as they reasonably can 
thereafter, shall pay, transfer, assign and deliver to 
her the funds and properties, or the value thereof, 
which they would have paid, transferred, assigned 
and delivered to her under the provisions of this 
paragraph of this trust had she attained such age or 
ages subsequent to my death. This trust shall cease 
and terminate as to each and every payment and 
distribution made under this provision of this trust 
as and when such payment and distribution is 
made; 

“(b) Upon the last day of the said period of 
twenty-one years herein mentioned for the duration 
of this trust, or upon it so happening that at any 
time theretofore neither my said daughter nor any 
lineal descendant of my said daughter shall be liv- 
ing, whichever of said contingencies shall first hap- 
pen, this trust shall cease and terminate as to, and 
the trustees shall pay, apply and distribute, the said 
one-third in value of the said residuary estate, as 
well as all the incomes, revenues and profits there- 
of, to the extent that the same may not have there- 
tofore been distributed, per capita, in equal por- 
tions, to and among the lineal descendants of my 
said daughter then living if there shall be any such 
lineal descendant then living, and if there be no 


The Duke Endowment 


48 

such lineal descendant then living, then into the 
trust created and established by me by Indenture 
dated December 11, 1924, wherein said trust is 
denominated The Duke Endowment.” 

“As respects each beneficiary hereunder, so long 
as such beneficiary shall be under twenty-one years 
of age (but in no event subsequent to the last day of 
said twenty-one year period mentioned for the du- 
ration of this trust) the trustees are requested, but 
not required, to withhold and accumulate for such 
beneficiary the whole or any part of the incomes, 
revenues and profits of this trust which, except for 
such withholding and accumulation, would be paid 
and distributed to such beneficiary, beyond such 
amount as the trustees hereof may think should be 
paid to any one or more of such beneficiaries in 
order to provide liberally for the current needs of 
such beneficiary. Each such accumulation, as well 
as the incomes, revenues and profits thereof, shall 
be separately kept and handled by said trustees as 
respects accounting, investment of funds, and 
otherwise, and the whole of such accumulations, 
incomes, revenues and profits shall be fully and fi- 
nally paid, applied and distributed by said trustees 
as follows, namely: (1) to the beneficiary from 
whom it was so withheld upon such beneficiary 


49 


The Will of fames B. Duke 

attaining the age of twenty-one years, or upon the 
said last day of the said period of twenty-one years 
mentioned and described for the duration of this 
trust, whichever of said events shall first occur, if 
such beneficiary shall be then living; or (2), if 
such beneficiary shall not be then living, then upon 
the death of such beneficiary (a) in all respects in 
accordance with the laws and statutes of the State 
of New Jersey at the time of the death of such 
beneficiary to and among those persons who by said 
laws and statutes would inherit real estate then 
owned by such beneficiary and located in said State, 
had such beneficiary died intestate and a resident 
of said State, or (b), if there shall not be living at 
the time of the death of such beneficiary any per- 
son to whom payment and distribution may be 
made pursuant to subdivision (a) hereof, then into 
the trust which has been created and established 
by me by Indenture dated December 11th, 1924, 
wherein said trust is denominated The Duke En- 
dowment; provided that the trustees hereunder, in 
their uncontrolled discretion, at any time and from 
time to time before the happening of any of said 
events, may pay and apply the whole or any part of 
any such accumulation, as well as of the incomes, 
revenues and profits, thereof, to and for the sup- 
port, education and maintenance of the beneficiary 


50 


The Duke Endowment 


from whom the same may have been withheld, in 
which event said full and final payment and dis- 
tribution under the foregoing terms of this provi- 
sion of my will shall be only of what may remain 
thereof at any time of the making of such full and 
final payment and distribution.” 

And Item XI, as changed by the codicil, pro- 
vides : 

“The residue of said residuary estate not disposed 
of by Item X hereof I give, devise and bequeath, 
and I direct my executors to pay and distribute, 
into the trust established by me by Indenture 
dated December 11th, 1924, wherein said trust 
is denominated The Duke Endowment, to be 
added to and become a part of the corpus of said 
trust and to be held, used, managed, administered 
and disposed of, as well as the incomes, revenues, 
and profits arising therefrom and accruing thereto, 
by the trustees of said trust under and subject to all 
the terms of said trust indenture, except that the 
trustees of said trust shall use and expend Seven 
Million Dollars ($7,000,000) of the principal 
thereof in building and equipping Duke Univer- 
sity and acquiring and improving property neces- 
sary for that purpose, according to such plans as 
may have been or may hereafter be adopted by 


51 


The Will of James B. Duke 

them for such purpose, and except further that the 
incomes, revenues and profits arising from and ac- 
cruing to said residue of said residuary estate shall 
be utilized, paid, applied and distributed each year 
by said trustees as to ninety per cent thereof upon, 
subject to and in accordance with all the terms of 
said indenture with respect to the payment and 
distribution of a percentage of the incomes, rev- 
enues and profits of said trust to and for maintain- 
ing and securing hospitals, and as to the remaining 
ten per cent thereof upon, subject to and in accord- 
ance with all the terms of said indenture with re- 
spect to the payment and distribution of a percent- 
age of the incomes, revenues and profits of said 
trust to and for said Duke University.” 


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ADDRESS OF WILLIAM R. PERKINS 


Mr. Chairman, and Members and Guests of 
The Sphex Club : 

I have Very real pleasure in being with you on 
this occasion. The privilege of appearing before 
such a gathering is an honor most highly esteemed, 
I assure you. And then Lynchburg is home. Here 
are the familiar scenes of years gone by. Here I re- 
ceived the impetus to whatever of achievement I 
may lay claim. And here, God willing, still linger 
many of the friendly faces that are nearest and 
dearest. Of all the beautiful pictures that hang on 
memory’s wall, the ones of the old Hill City, they 
seem to me best of all. 

My subject is The Duke Endowment, its origin, 
nature and purposes, which I have been told, and 
can well understand, is of interest to you. It is one 
of the outstanding philanthropies of all time. It is 
of our Southland. It is for our Southland. While 
located in the Carolinas where the Dukes were 
born and the Duke Power System operates, un- 
doubtedly its influence will permeate and its ac- 

53 


54 


The Duke Endowment 


tivities will benefit elsewhere, as through the great 
educational institution it is constructing at Durham 
on your border. And if the income prove more than 
sufficient within the Carolinas the trustees, in their 
discretion, may use the excess for hospitalization 
beyond their confines, giving preference to adjoin- 
ing States, in which category, of course, comes 
Virginia. 

All that exists or happens is the expression of a 
personality. Such is the case with business and 
pleasure, our good deeds and our bad, our homes 
and habits, and even the clothes we wear; for the 
apparel oft proclaims the man. This world of ours 
is the expression of a great personality. I know that 
on this subject some assert insufficient knowledge to 
form a belief and others enter an ignorant denial ; 
but to me the marvel of creation has always meant 
the existence of a Superior Being, and I behold in 
the act which is my theme this evening a product 
of this Superior Being working through the hearts 
and consciences of mankind. 

The Duke Endowment was an expression of the 
personality of James Buchanan Duke, though it 
presented a side of him which then seemed little 
known to the public. I well recall the surprise 
voiced by the Press in its announcement. As a mat- 
ter of fact, this was one of the highest compliments 


Address of William R. Perkins 55 

ever paid the quiet, unpretentious way in which 
Mr. Duke carried forward his plans. Yet I confess 
to quite a feeling of resentment at the time because 
I knew this lack of understanding had its source 
in the persistent ways in which he had been de- 
picted as a malefactor of great wealth by those who 
sought to secure their own preferment by his de- 
traction. 

There should have been no surprise. Mr. Duke 
came of a family of benefactors. His father, Wash- 
ington Duke, and his brother, Benjamin N. Duke, 
were both notable in this respect. The aggregate of 
their donations was imposing. Mr. Duke himself 
had been generous in his gifts and his intimate 
friends were well aware that he contemplated, to 
use their oft repeated phrase, “big things for God 
and humanity”. Mr. Duke’s mind was busy with 
the subject as far back as when I became his per- 
sonal counsel and for over ten years there lay in the 
drawer of my desk a draft of the document which 
eventually embodied The Duke Endowment. 

You wonder at this elapse of time. The answer 
is the unique basis of the Endowment, which dis- 
tinguishes it radically from other large philan- 
thropies. The Press notice stated simply that Mr. 
Duke had given $40,000,000 to charity. The Inden- 
ture described the donation as so-many shares of 


The Duke Endowment 


56 

stock. What Mr. Duke really contributed in major 
part was control and operation of a business. 

Many years ago, while in the midst of his to- 
bacco merchandising, Mr. Duke had his attention 
called to a hydro-electric development on the Ca- 
tawba River in South Carolina. An investigation 
was followed by an investment. And thus there be- 
gan what, for him, was the real business fascination 
of his life, culminating in the acquisition and de- 
velopment of the great Saguenay River in the Prov- 
ince of Quebec, Canada and giving rise, contrary 
to popular belief, to much the larger portion of his 
fortune. 

Mr. Duke was a builder. He loved to create and 
establish. This quality was preeminent in his make- 
up and found full scope for its exercise in harness- 
ing the great natural resource — ^water power — and 
turning it to the service of mankind. He threw him- 
self wholeheartedly into this field of endeavor. He 
erected dams and power plants and transmission 
lines. By participation in financing and otherwise, 
he encouraged the location of industries on these 
lines. He even projected an electric railway, parts 
of which he constructed and would have completed 
the whole but for the World War and its after- 
math. The result was that the portions of North and 
South Carolina, in which these activities centered. 


Address of William R. Perkins 57 

became a synonym of progress and prosperity. The 
Duke Power System took its place in the front rank 
of public utilities, with plants producing millions 
of kilowatt hours of electrical energy which it dis- 
tributed over miles of transmission lines to thou- 
sands of customers, including many towns and 
cities. And there was borne in upon Mr. Duke the 
great thought which lies at the very foundation of 
his Endowment — ^why not let his philanthropy take 
the form of giving this power system to the com- 
munities it served in a manner whereby through it 
they could finance their own charities by simply 
doing business in the usual and ordinary way. 

I shall never forget the delight with which Mr. 
Duke in the utmost confidence unfolded the idea to 
me. He felt it met the test of real assistance. It 
helped others to help themselves. And he illus- 
trated by saying it was easy enough to give a fellow 
food or shelter or raiment or money, but the best 
of all gifts was a job. He asked me to embody the 
plan in a draft of indenture, which I did, and he 
went about its performance with the enthusiasm 
of a boy, refusing to accept from tbe Companies 
even the expenses of his services, much less any 
compensation, though much stock was in the hands 
of the public. 

Hence the ten years which I mentioned ; for Mr. 


58 The Duke Endowment 

Duke was unwilling to turn over the properties un- 
til he regarded them as complete for the purpose. 
And what a ten years! There was the war, with its 
stress and havoc and deluge of blood and tears, 
when all our resources and energies were bent to 
the one essential, victory. During the war there 
came the greatest flood ever known in the Caro- 
linas. The Catawba River, where most of the Duke 
plants are, rose some fifteen feet higher than any 
previous record and washed away every bridge 
from the mountains to the sea. So dams had to be 
carefully reinforced and a large impounding res- 
ervoir built high up on the watershed to provide 
amply against such future occurrences. Again, the 
war left wages and other costs so high that the rates 
obtaining for electric current were found mate- 
rially inadequate. So proceedings had to be insti- 
tuted which, after a bitter fight, secured a compa- 
rable increase. And it was only when all these 
things had been accomplished that Mr. Duke re- 
garded the situation ripe for dedicating the prop- 
erties to his magnanimous conception. 

Of course, meanwhile the conception had grown 
immensely in amount and scope. Such was always 
the case with what Mr. Duke undertook. The 
$40,000,000 value put into the Endowment at its 
inauguration embraced largely more than stock in 


59 


Address oj William R. Perkins 

the Duke Power System. One-fifth of each year’s 
net income he required to be accumulated until 
thereby another $40,000,000 was added to the prin- 
cipal of the Endowment. And his Will probably 
added as much more. For it bequeathed the En- 
dowment $10,000,000 by Item VIII and by Item 
XI, as amended by the codicil, two-thirds of his 
residuary estate, subject only to an annuity to his 
widow. 

But through it all runs the basic thought on 
which the philanthropy is bottomed and the In- 
denture expressly and broadly so states. Thus in his 
declarations for the guidance of the trustees Mr. 
Duke says : 

“For many years I have been engaged in the 
development of water powers in certain sec- 
tions of the States of North Carolina and 
South Carolina. In my study of this subject I 
have observed how such utilization of a na- 
tural resource, which otherwise would run 
in waste to the sea and not remain and increase 
as a forest, both gives impetus to industrial 
life and provides a safe and enduring invest- 
ment for capital. My ambition is that the rev- 
enues of such developments shall administer 
to the social welfare, as the operation of such 


6o 


The Duke Endowment 


developments is administering to the economic 
welfare, of the communities which they 
serve.” 

And with these views in mind he not only recom- 
mended the securities of the Duke Power System 
as “the prime investment for the funds of this 
trust”, but required such funds to be invested by 
loans to, or acquiring the securities of, the Duke 
Power System “if and to the extent that such a loan 
or such securities are available upon terms and 
conditions satisfactory to said trustees”; otherwise 
investments could be only in first-class Federal, 
State or Municipal Bonds. He not only advised the 
trustees not to “change any such investment except 
in response to the most urgent and extraordinary 
necessity”, but he stipulated that such securities 
could not be disposed of, in whole or part, “except 
upon and by the affirmative vote of the total auth- 
orized number of trustees at a meeting called for 
the purpose, the minutes of which shall state the 
reasons for and the terms of such sale”. And he re- 
quested the trustees “to see to it that at all times 
these Companies be managed and operated by the 
men best qualified for such a service”. 

I feel justified, therefore, in stressing this strik- 
ing characteristic of the Endowment which I be- 


Address of William R. Perkins 6i 

lieve to be unique. I have supreme faith in its effi- 
cacy because I have just that faith in the common 
sense and loving kindness of the people on whose 
shoulders has fallen this mantle of beneficence. 
When they understand the conception they will ap- 
preciate and fulfill it. And if they do not, the trus- 
tees by unanimous action have a way out so that 
the Endowment will not thereby be jeopardized. 

Another feature of the Endowment worth dwell- 
ing upon is its duration. This subject was brought 
again to the fore in an article by Mr. Julius Rosen- 
wald which appeared in the Atlantic Monthly for 
May, 1929 and has since been distributed in pam- 
phlet form. Mr. Rosenwald makes vehement op- 
position to perpetual endowments and, suiting his 
action to his word, has required that every dollar 
of his donations, both principal and income, be ex- 
pended within twenty-five years of his death. 

I have read the article with much interest. Its 
controlling thought is that perpetual endowments 
unduly tie up capital and outlive their usefulness. 
And, within proper limits, there is merit in the 
view. For, undoubtedly, as Bobby Burns well said, 
“the best laid schemes o’ mice and men gang aft 
agley”. But I do not believe the subject admits of 
the broad generalizations and strictures which Mr. 
Rosenwald indulges nor that his illustrations of 


62 


The Duke Endowment 


outlived usefulness are the kind upon which to 
base a universal rule of conduct. Rather do I think 
the determinating factors to be the nature of the 
object desired and its attendant circumstances, as 
objects differ greatly in their endurance and re- 
quirements. 

For instance, I cannot see any parallel to the 
great causes of health and education in the cases 
cited by Mr. Rosenwald of funds established for 
“worthy and distressed travelers and emigrants 
passing through St. Louis to settle for a home in 
the West”; to furnish “a baked potato at each meal 
for each young woman at Bryn Mawr”; to pro- 
vide for Boston “fortifications, bridges, acqueducts, 
public buildings, baths, pavements or whatever 
may make living in the town more convenient for 
its people and render it more agreeable to 
strangers” ; to pipe water from Wissihicken Creek 
for the City of Philadelphia or to make Snug Har- 
bor in Brooklyn “a haven for superannuated 
sailors”. Those examples are the extremes, the 
freaks, of history, though some were by men both 
eminent and wise. One has but to consider the prob- 
able fate of Harvard, Yale, Princeton, Johns Hop- 
kins, Leland Stanford, had each of their benefac- 
tors been of Mr. Rosenwald’s mind. 

The same thing is true of Mr. Rosenwald’s un- 


Address of William R. Perkins 63 

gracious comment on Mr. Hershey’s noble provi- 
sion for orphans, that “orphan asylums began to 
disappear about the time the old-fashioned wall 
telephone went out”. I suspect Mr. Hershey was 
much better informed concerning orphanages th^n 
Mr. Rosenwald. For ten per cent of the net income 
of The Duke Endowment is given to institutions in 
the Carolinas which, as a charity, take care of white 
and colored whole or half orphans. And so far we 
have found no diminution in such institutions or 
their need for funds. 

Besides, Mr. Rosenwald’s view runs counter to 
the great incentives of life and athwart the prevail- 
ing traits of humanity. Men prefer to write in brass, 
not water, to leave their footprints in rock rather 
than upon the shifting sand. They are unwilling, 
unless necessity compels, to trust their cherished 
ambitions to something so precarious as posthu- 
mous charity, not that coming generations will 
prove uncharitable, but that they may have other 
plans of their own. 

Mr. Duke could not envisage the fruition of the 
University he was founding or the Hospitalization 
he was inaugurating except through substantial 
permanence in his provision for them. He there- 
fore expressly provided that the Endowment 
should endure forever under the management of a 


64 The Duke Endowment 

self-perpetuating board of fifteen trustees who 
could expend none of the principal except the $17,- 
000,000 for erecting and equipping Duke Univer- 
sity. At the same time he gave the trustees such 
ample discretion about income as safely to accom- 
modate his philanthropy to the changes time may 
work. If any beneficiary ceases to exist the income 
allotted it may be used for any other object of the 
Endowment. As respects any year and any object 
except Duke University the trustees may withhold 
the income allotted and use it either for “any such 
like charitable religious or educational purpose” 
within the Carolinas or for “any such like chari- 
table hospital purpose which shall be selected 
therefor by the affirmative vote of three-fourths of 
the then trustees” at a meeting called for the 
purpose; and without such vote the trustees may 
use in any State the income allotted to Hospitaliza- 
tion, in excess of that needed in the Carolinas, 
giving preference to those States adjoining the 
Carolinas. Even as to Duke University if, in the 
judgment of the trustees, it “incur expense or 
liability beyond provision already in sight to meet 
same” or “be not operated in a manner calculated 
to achieve the results intended” they may withhold 
the whole or any part of the income allotted that 
institution and use it for any other object of the 
trust. 


Address of William R. Perkins 65 

You thus see that the trustees have the widest 
discretion for use of income within the Carolinas 
and outside those States may use the whole income 
of the Endowment to extend aid to hospitalization, 
according to Mr. Duke’s plan, unto the four 
corners of the earth. 

The objects of the Endowment may be con- 
veniently classified as religion, hospitalization and 
education, of which the provision for orphans has 
already been mentioned. 

To appreciate the provisions for religion one 
must realize that Mr. Duke was a Methodist of the 
rural district type and such had been his father and 
his grandfather before him. And a first-rate type 
it was and is. The Circuit Rider had entered deep 
into the warp and woof of their lives, as into the 
lives of many others. Mr. Duke often remarked : 
“My old daddy always said that if he amounted 
to anything in life it was due to the Methodist 
circuit riders”, to which he invariably added: “If 
I amount to anything in this world I owe it to my 
daddy and the Methodist Church.” And may I add 
that I do not believe any son ever cared more for 
a father ? As the years sped it ripened into a venera- 
tion beautiful to contemplate, of which I might 
give you numerous incidents. I could but marvel 


66 


The Duke Endowment 


at the man Washington Duke must have been, thus 
to have impressed and influenced for good the life 
of his great descendant. It made me realize the 
possibilities, the responsibilities, of fatherhood as 
nothing else and always brought an intense yearn- 
ing that my life, each father’s life, might deserve 
and receive such a blessing. 

You will not be surprised, therefore, to know 
that the Endowment’s provisions for religion took 
the form of allotting six per cent of the distribu- 
table net income to assist in building Methodist 
Churches in the sparsely settled rural districts of 
North Carolina and four per cent of such net 
income to assist in maintaining and operating 
Methodist Churches in those districts. In addition, 
two per cent of such net income was allotted for the 
care and maintenance of needy and deserving su- 
perannuated preachers and widows and orphans 
of deceased preachers who shall have served in a 
Methodist Conference in North Carolina, a pro- 
vision which perpetuated a gift Mr. Duke had been 
making yearly for some while through Trinity 
College by way of supplement to the Conference 
fund for the same purpose. Up to July 1, 1929, the 
Endowment had paid in round figures $66,250 to 
superannuated preachers and their families, $93,- 
000 for operating rural churches and $148,000 for 


Address of William R. Perkins 6~j 

building rural churches, this amount being about 
Vs of the total for such building. 

Hospitalization appealed strongly to Mr. Duke 
because he considered the cause splendid and the 
need very great. He therefore provided much more 
liberally for it than for any other purpose. The 
Indenture allotted to it thirty-two per cent of the 
distributable net income arising from its principal 
and accretions. Mr. Duke’s Will, in giving two- 
thirds of his residuary estate to the Endowment, 
specified that ninety per cent of the net income 
therefrom should be used for hospitalization under 
the terms of the Indenture. And it is the only object 
for which the trustees may use net income beyond 
the confines of the Carolinas, in the manner and to 
the extent I have already indicated. 

This aid to hospitalization took two forms, help- 
ing people to get needed hospital attention and 
helping to secure hospitals adequate to such needs. 

To the former Mr. Duke gave precedence be- 
cause he regarded it more immediately pressing 
and less likely to be met sufficiently. His provision 
for it was a direction to the trustees to pay to each 
and every hospital in the Carolinas, whether for 
white or colored, not operating for private gain, 
such sum (not exceeding $1) per free bed per day 
for each and every day such bed may have been 


68 


The Duke Endowment 


occupied during the period covered by such pay- 
ment free of charge by patients unable to pay as 
the amount available for the purpose will pay on a 
pro rata basis. 

This form of assistance is based on what is al- 
most axiomatic, that if you take care of the charity 
patients the hospital will take care of itself. It was 
adopted only after thorough study and in accord- 
ance with the best modern thought. Hospitals must 
serve the people. They should not, can not, turn 
suffering humanity away. But most of the cases 
come from those who are unable to bear the ex- 
pense and pay patients may not be charged sufficient 
to carry fully this extra burden. It is just here, 
where the shoe pinches, that Mr. Duke’s plan 
supplements in an amount which an elaborate 
analysis of hospital costs and experiences indicated 
would be proper, namely, not exceeding $1 per free 
bed per day. In reality he has to this extent en- 
dowed hospitals in proportion to the charity work 
they do. And it constitutes a great forward stride 
in enabling hospitals to realize their true mission. 

The second form of help in hospitalization con- 
sists in securing adequate hospitals by assisting in 
the erection of those not operated for private gain. 
And to this Mr. Duke has dedicated the surplus of 
the funds allotted to hospitalization left after mak- 


Address of William R. Perkins 69 

ing the free bed payments. While thus subordi- 
nated, this second form should not be minimized, 
for the two forms of assistance are, in fact, co- 
ordinate. 

The practice of modern medicine is dependent 
upon and therefore centers around the hospital. 
This is a well-known fact and the reason is plain. 
The great progress in the sciences and surgery, as 
well as in mechanics, has made hospital facilities 
indispensable in both diagnosis and treatment. But 
hospitals, for the most part, are yet located in cities 
and large towns. And the result is a vast dispropor- 
tionateness between our urban and rural popula- 
tions as respects the amount, nature and caliber of 
the medical facilities open to them. 

Mr. Duke saw and appreciated this inequality 
and sought its relief. His conception was a network 
of hospitals so located and constructed that they 
and their attendant staffs would be adequate and 
accessible to all who might need. And as the climax, 
the capstone, of this system of hospitals his Will 
bequeathed $10,000,000 to The Duke Endowment, 
of which $4,000,000 was to be used in building and 
equipping at Duke University a Medical School, 
Hospital and Nurses’ Home, and the net income of 
the whole turned over to Duke University for their 
operation. 


70 


The Duke Endowment 


The trustees have earnestly set themselves to the 
task of fulfilling this program for hospitalization. 
They have been fortunate in securing for direction 
of this work the services of Dr. W. S. Rankin, a 
splendid, capable man of fine experience whose en- 
thusiasm knows no bounds. Real progress is being 
made, though co-operation in full measure in 
building and equipping hospitals will come slowly 
because only education brings a true realization of 
this need. To July 1, 1929, in round figures the free 
day bed payments have aggregated about $1,500,- 
000 and the expenditures and commitments for 
building and equipping hospitals about $1,125,000, 
exclusive of the Hospital and Medical School at 
Duke University. The construction of the latter is 
well on the road to completion. They are expected 
to be open by September, 1930. Their head will be 
Dr. W. C. Davison, formerly Assistant Dean of 
Johns Hopkins, another really splendid and cap- 
able man. He has been giving his close personal 
attention to the construction and assures us that in 
location, structure and appointments they will 
compare favorably with the best now existing. 

The magnitude of this program for hospitaliza- 
tion can not be overstated. One is simply over- 
whelmed by the contemplation of its sweep 
through the years, nay ages, to come. It is not too 


Address of William R. Perkins yi 

much to say that it will prove a veritable tree of 
life whose leaves are for the healing of the nations. 

While the Endowment allots five per cent of the 
net distributable income to Davidson College, a 
Presbyterian institution located at Davidson, N. C., 
a like amount to Furman University, a Baptist in- 
stitution located at Greenville, S. C. and four per 
cent of such net income to the Johnson C. Smith 
University, an institution for colored people lo- 
cated at Charlotte, N. C., and these are appreciable 
gifts, Mr. Duke’s real provision for education is 
Duke University. 

In 1838 the Methodists and Quakers joined in 
establishing a school in Randolph County, N. C., 
which they appropriately called “Union Institute”. 
Later it was incorporated as “Normal College” 
and the Governor of the State became chairman 
and other State officials became members of the 
Board of Trustees. This mingling of state with 
school soon ended, and the institution was turned 
over to the North Carolina Methodist Conference, 
by which it was renamed “Trinity College”. 

Mainly through the efforts of Mr. Washington 
Duke, in the early nineties Trinity College was 
moved to Durham, N. C. in order to secure better 
facilities and a larger outlook. To accomplish this 
he pledged for buildings $85,000, which he later 


72 


The Duke Endowment 


increased to $180,000. And thereafter he gave for 
endowment amounts totalling $300,000. Part of 
this latter was on condition that young women 
should be given all the privileges granted to young 
men as students there, the condition was accepted 
and thereby Trinity College became, and Duke 
University will be, a co-ordinate school of educa- 
tion for young men and young women. 

Following in the footsteps of his father, Mr. 
James B. Duke, when the Endowment was es- 
tablished, had contributed to Trinity College some 
$100,000 for buildings, $158,500 for expenses, and 
approximately $3,000,000 for endowment, besides 
uniting with his brother, Mr. Benjamin N. Duke, 
in adding 2714 acres to the old campus and $800,- 
000 to endowment. Mr. Benjamin N. Duke, besides 
his participation I have mentioned, had contrib- 
uted around $100,000 to endowment, some $250,000 
for expenses and over $300,000 for building pur- 
poses. And other members of the Duke family had 
made further contributions, notably Mr. Angier 
B. Duke, who gave $30,000 for expenses, joined 
with his sister, Mrs. Mary Duke Biddle, in con- 
tributing $25,000 to the erection of the Alumni 
Memorial Gymnasium and by his will bequeathed 
$250,000 to endowment. 

You thus realize that at the time of the creation 


Address of William R. Perkins 73 

of the Endowment Duke generosity had played a 
most prominent part in locating, building and 
maintaining Trinity College at Durham and aug- 
menting its endowment funds. And you see how 
entirely natural and fitting it was that Mr. Duke 
should think in terms of Trinity College in plan- 
ning his philanthropy for education. Accordingly, 
he provided that by taking the name “Duke Uni- 
versity”, Trinity College might be the Duke Uni- 
versity contemplated by the Endowment so long 
as it retained that name and was not operated for 
private gain, subject, however, to discretionary 
power in the Endowment trustees to withhold the 
whole or any part of the income allotted the Uni- 
versity should it incur expense or liability beyond 
provision in sight to take care of same or, in their 
judgment, be not “operated in a manner calculated 
to achieve the results intended” for education 
through Duke University under the Endowment. 

In some quarters it has been suggested that in this 
power to withhold might lie seeds of future con- 
flict and embarrassment. But no such apprehension 
exists among those who bear the responsibility. 
Rather do they think it an element of strength, pre- 
venting the ill-considered and making for stability 
like the checks and balances of our National Gov- 
ernment. The response from Trinity College was 


74 


The Duke Endowment 


immediate and complete. It welcomed this call to 
greater usefulness. The name was promptly 
changed from “Trinity College” to “Duke Univer- 
sity”. And in good faith and perfect harmony its 
trustees and officials and those of the Endowment 
are co-laboring, and in the years to come will con- 
tinue so doing, to fulfill the purposes of the Endow- 
ment as to Duke University, all parties well under- 
standing that this was not simply a change of name 
or acquisition of funds for building or mainte- 
nance, but a dedication of Trinity College to 
achieving these intended educational results. 

What are these purposes, these intended results? 
They embrace both construction and operation. 

The construction program, as outlined for the 
Endowment, consisted in expanding and extend- 
ing Duke University, acquiring and improving 
lands and erecting, remodeling and equipping 
buildings for that purpose, to the end that Duke 
University might include Trinity College as its 
undergraduate department for men, a school of 
religious training, a school for training teachers, 
a school of chemistry, a law school, a co-ordinate 
college for women, a graduate school of arts and 
sciences, a medical school and an engineering 
school. For it the Endowment allotted $6,000,000, 
Mr. Duke gave an additional $2,000,000, and by 


Address of William R. Perkins 75 

his Will he bequeathed $11,000,000 more, making 
a grand total of $19,000,000. It was to be carried 
out by the Endowment trustees. And this they are 
now doing in two steps or stages. 

The first step was enlarging the existing Trinity 
College into what will be the Co-ordinate College 
for Women of Duke University. Here the plans 
required the removal of three buildings and the 
addition of eleven buildings, constructed of red 
Baltimore brick, trimmed with Vermont marble, 
in the Georgian style of architecture. And this unit 
has now been completed and is in use. Its main 
buildings are grouped about a quadrilateral, at one 
end of which is the entrance while the other end is 
closed by the Auditorium with its spacious dome, 
which constitutes the dominant feature of the en- 
semble. And the whole comprises a campus of 
108^4 acres, located on Main Street in the western 
part of Durham, enclosed by a fine stone wall and 
beautifully planted; the auditorium seating 1,400 
people, a union building with offices and dining 
and service rooms, as a center of student activities, 
a capacious library, three science buildings, three 
other classroom buildings, an apartment building 
containing 18 suites for faculty members, 10 dor- 
mitories arranged to house over 1,200 students, be- 
sides several residences, a heating plant, and other 


The Duke Endowment 


76 

buildings; also an athletic field provided with 
grandstand, bleachers and cinder runningtracks, 
and a finely appointed gymnasium with splendid 
bathing pool. 

The second step was the creation of a new unit, 
the College for Men and Graduate and Profes- 
sional Schools of Duke University. This is now 
well on the road to completion, with the hope of 
opening in September, 1930. For it there has been 
acquired a campus of some 5,000 acres lying about 
a mile to the southwest of the old campus and con- 
nected with it by an avenue which passes under 
Main Street and the railroad. Here roads are being 
laid out, the grounds planted and construction is 
proceeding. The architecture is Gothic and the ma- 
terial native stone from a nearby quarry with tile 
roofs and trimmings of Indiana Limestone. Again 
the main buildings are grouped about a quadri- 
lateral. The dominant feature, as you approach the 
grounds, will be a chapel with imposing spire ris- 
ing upwards of 200 feet. To your right, as you face 
the chapel, will be the school of religion, the library, 
the law school, the chemistry building, the medical 
school and hospital, the botany and zoology build- 
ing and the physics and science building; while to 
your left will be the auditorium seating 1,500 
people, the union, again with offices and dining and 


Address of William R. Perkins 77 

serving rooms, as a center of student activities, and 
three groups of dormitories arranged to house 1,500 
students. Farther still to the left are the gymnasium 
with swimming pool, the athletic fields and the 
stadium, or horseshoe bowl, seating 35,000 people, 
recently opened, as you no doubt saw in the papers, 
with a game between Duke and the University of 
Pittsburgh. There is also the heating plant and 
laundry. Plans are now being made to erect some 
appropriate houses for officials and faculty mem- 
bers. And eventually there will be tennis courts, 
golf links and probably a lake sufficient for aquatic 
sports. 

I realize, of course, that what I have said gives 
you the merest thumbnail sketch of the physical fea- 
tures of Duke University. But neither time nor tal- 
ent avail for more. Come and see for yourself. The 
trip is well worth while and a cordial invitation is 
extended. Though other institutions have finer in- 
dividual buildings and a larger aggregate accumu- 
lated over the years, this is the greatest piece of 
scholastic construction ever consumated at a single 
time. And we feel confident that in arrangement, 
structure, ornamentation and appointment it will 
be an outstanding accomplishment. 

The operation of Duke University is in the hands 
of its trustees, officials and faculty. For it the En- 


78 


The Duke Endowment 


dowment allotted thirty-two per cent of the dis- 
tributable net income arising from its principal and 
accretions. And the Will gives all the net income 
arising from the $10,000,000 and ten per cent of 
the net income arising from the portion of the 
residuary estate which it bequeathed to the En- 
dowment, less the $11,000,000 it directed to be 
spent for building and subject, of course, to the 
power of withholding I have mentioned. 

In respect of the operation of Duke University 
Mr. Duke declared for the guidance of his trustees : 

“I have selected Duke University as one 
of the principal objects of this trust because 
I recognize that education, when conducted 
along sane and practical, as opposed to 
dogmatic and theoretical, lines, is, next to 
religion, the greatest civilizing influence. I 
request that this institution secure for its 
officers, trustees and faculty men of such 
outstanding character, ability and vision 
as will insure its attaining and maintaining 
a place of real leadership in the educational 
world, and that great care and dis- 
crimination be exercised in admitting as 
students only those whose previous record 
shows a character, determination and ap- 
plication evincing a wholesome and real 


Address of William R. Perkins 79 

ambition for life. And I advise that the 
courses at this institution be arranged, first, 
with special reference to the training of 
preachers, teachers, lawyers and physicians, 
because these are most in the public eye, and 
by precept and example can do most to 
uplift mankind, and, second, to instruction 
in chemistry, economics and history, espe- 
cially the lives of the great of earth, because 
I believe that such subjects will most help 
to develop our resources, increase our wis- 
dom and promote human happiness.” 

I should like, if I may, to dwell somewhat on that 
statement. It is a formula for our educational prob- 
lems from a business man of rare ability and ex- 
perience and will repay your earnest consideration. 
Though brief, it is most expressive. 

He lays down the basis on which to proceed. He 
says education, next to religion, is the greatest 
civilizing influence “when conducted along sane 
and practical, as opposed to dogmatic and theoreti- 
cal, lines”. This is a recurrence to fundamentals, a 
subordination of isms to the common sense of the 
job. And it is timely and wise. There must be pro- 
vided a broad groundwork of accepted education, 
both general and special, totally outside the con- 
troversial fields of thought, for the great body of 


8o 


The Duke Endowment 


the people. Our higher education, so called and all 
right in its place, must be nurtured in a soil thus 
prepared ; unless erected on such a foundation it is 
the sport of the winds and a menace. But beyond 
that, we are the melting pot of the races, a fact as 
yet less apparent South than North and West. Our 
proclaimed liberty, in whose name so many crimes 
are committed, has made us the mecca and paradise 
of earth’s doctrinaires. While no one would limit 
thought or stifle honest expression, a decent regard 
for our ideals and institutions demands, at the least 
and above all else, a wholesome diet of substantial 
foods that will produce solid, balanced Americans 
who can assimilate properly. 

He tells us the raw material to get. He says there 
should be admitted as students only those whose 
previous record shows “a character, determination 
and application evincing a wholesome and real 
ambition for life”. Time was when schools went out 
in search of students. Now, due to growth of popu- 
lation and prolongation of courses, there is an over- 
supply, despite increase in facilities, and the prob- 
lem is one of selection. And here Mr. Duke requests 
that “great care and discrimination be exercised”. 
The subject is too big to discuss now. But among 
other things I feel sure he meant that the matter 
should be handled as individually as possible; more 


Address of William R. Perkins 8i 

so, in my opinion, than by the entrance examination 
method upon which such great reliance is now 
being placed. That is too much a rule of thumb for 
mass production to get the desired results. We 
should ascertain family facts and antecedents, the 
record of study and conduct in previous schools and 
the views of friends and neighbors. Some boys and 
girls will not take a college education, much to the 
discouragement of their parents, though there 
should be none; for no doubt as large a proportion 
of these will succeed in after life as of attendants 
at college. And those who take a college education 
have different types and bents of mind. So our job 
is to help the young people to find themselves and 
we can do this only through the care and discrimi- 
nation which Mr. Duke advocates. This point is 
really the great cross-roads of life and its method 
of handling makes or mars more years and lives 
than all else combined. 

He points out the tools to use. They are “men of 
such outstanding character, ability and vision” for 
officers, trustees and faculty as will insure the Uni- 
versity “attaining and maintaining a place of real 
leadership in the educational world”. No one real- 
ized more fully than Mr. Duke that fine buildings 
do not make a fine school. If possible, the human 
equation is more vital there than almost any other 


82 


The Duke Endowment 


place. To capability must be added that indefinable 
thing we call personality. For my own part, I be- 
lieve the young people get much more from the 
lives encountered than the books studied. Run back 
in memory to your own college days and you will 
find standing out in the perspective some splendid 
man or woman as the influence that still enthralls 
you. They meet us at the threshold of life when 
faith is new and hopes are high and on our open 
minds for good or bad make impressions that en- 
dure. A pebble in the streamlet’s flow has changed 
the course of many a river; a bird upon the tiny 
bough has warped the giant oak forever. 

And may I add, parenthetically, how inadequate 
seems to me our appreciation of such an important 
service. I have been really astonished at the little 
recognition accorded these unsung heroes, not 
simply in money but in various other ways. How 
many are in our halls of fame or compendiums of 
lives worth while? No, look at it as you please, 
other pursuits are vastly more inviting, other fields 
far greener. Why, many of those who do take up 
teaching have to eke out a livelihood by writing, lec- 
turing or otherwise, to the neglect of the students 
and their own disgust at the inequalities of life. 
No wonder so many of our boys and girls tire of 
their studies, get imbued with foolish notions and 


Address of William R. Perkins 83 

come home thinking our boasted civilization all 
wrong. 

And he specifies the products he desires, giving 
the reasons for his preferences. He puts first, the 
training of preachers, teachers, lawyers and physi- 
cians because he considers these are “most in the 
public eye and by precept and example can do most 
to uplift mankind”. He puts second, instruction in 
chemistry, economics and history, especially the 
lives of the great of earth, because he believes such 
subjects “will most help to develop our resources, 
increase our wisdom and promote human happi- 
ness”. 

To uplift mankind! To promote human happi- 
ness! Such is the true philosophy and the sublime 
of life. Such, in its essence, is The Duke Endow- 
ment I have endeavored to portray to you. 

Quite a number of years ago, as Mr. Duke and 
I sat talking, he fell into one of those reminiscent 
moods that come to us all now and then. And under 
the impulse of the fascinating retrospection I asked 
him what he regarded as the greatest thing he had 
done. His answer was, assembling in The American 
Tobacco Company a group of men so capable that 
each of the large companies into which it was split 
by the Federal Courts could be amply manned to 


84 The Duke Endowment 

preserve this great industry and safeguard those in- 
terested in it. 

The years rolled on. The Endowment became a 
living fact. And again Mr. Duke and I were talk- 
ing together. I reminded him of the conversation 
I have just narrated. And I asked, “What do you 
say now, Mr. Duke, is the greatest thing you have 
done?” Without hesitation he replied, “The crea- 
tion of the Endowment, because through it I make 
men.” 

I often think of those talks, as I do, indeed, of my 
whole association with Mr. Duke, now, unhappily, 
but a memory. To me it was an education, a de- 
light, an inspiration. I feel sure there never was a 
more complete and unreserved relationship be- 
tween attorney and client. That was his way. He 
was frankness and simplicity itself. His associates 
were just members of a big family, laboring to a 
common end, each putting in his oar according to 
his talents and training. 

Mr. Duke created the fortune he amassed. He 
did not prosper at any one’s expense. On the con- 
trary, he carried his business associates with him to 
an extent that gained for him the reputation of hav- 
ing made more millionaires than any other Ameri- 
can. One of his maxims was never to make any 
money out of those engaged in an undertaking with 


Address of William R. Perkins 85 

him. When I came with him he cautioned me to 
take pains to draw all papers fairly and plainly, 
saying no contract was any stronger than the inter- 
est of the parties to keep it. He was an early and 
ardent advocate of the bonus system, whereby a 
share of the net profits went to both officers and 
employees in addition to their regular compensa- 
tion. And this, in various forms, has now been 
widely adopted and is doing more, perhaps, than 
any one thing to solve our difficult labor problems 
by making business a partnership, so to speak, be- 
tween owners and operators. 

Mr. Duke reaped much because he sowed 
largely and well. His test of a business project was 
whether or not it would do the job better and 
cheaper than it was then being done. If careful in- 
vestigation and consideration showed the proposal 
to be sound he threw himself into it unsparingly. 
To realize what I mean you have but to contrast 
the tobacco industry today and when he entered 
that field. Then the plant was little more than a 
weed. Now it forms one of the largest crops, sells 
in all the markets of earth, gives employment to 
thousands and returns millions in revenue to the 
Government and in profits to investors. 

Nature endowed Mr. Duke most generously. A 
truly magnificent mind was supported by a splen- 


86 


The Duke Endowment 


did physique and graced with those finer qualities 
that mark the true gentleman. Common sense, 
rugged honesty, dynamic energy, tenacity of pur- 
pose and courage of conviction were his in abund- 
ance. He was most considerate of others, their 
rights, opinions and pleasures, which made him 
always a charming host and temperate in his views 
and expressions. I never heard him use an oath and 
he rarely spoke disparagingly of anyone. 

His poise and self-restraint were wonderful. Not 
many men have been more misrepresented to the 
public than he. On the hustings and in press and 
periodicals, by politicians consumed with lust for 
office or those courting notoriety through cheap 
sensationalism, Mr. Duke was reviled and held up 
to scorn and contempt, often in terms so extravagant 
they overreached themselves and fell upon the 
other side. This still persists notwithstanding his 
death. He knew, and I also knew, that these canards 
were utterly baseless and untrue. Yet he opened not 
his mouth and held in check the righteous wrath of 
family and friends. 

A striking example of this characteristic occurred 
in his efforts to obtain an increase in power rates 
without which I have told you he was unwill- 
ing to turn his power properties into the Endow- 
ment. To secure this increase an application was 


Address of William R. Perkins 87 

made to the proper State Commissions. And to the 
extent the increase should be allowed it would 
raise the rates in existing contracts and not simply 
apply to contracts thereafter made. In order to ob- 
viate this effect (though it was a proper effect be- 
cause the law had made this risk a part of each 
contract), a good many power users joined in an 
appeal to the Legislature of the State of North 
Carolina to pass an act restricting any such increase 
to future contracts only; and one of their main 
arguments was that Mr. Duke should not be per- 
mitted to use the natural resources of the State to 
coin more money for his already bulging pockets. 
I pleaded with Mr. Duke to confound these op- 
ponents by making known his plan for the Endow- 
ment. But he refused, saying he did not wish to pre- 
vail that way, as it was a business proposition with 
these customers and he was entitled to win out on 
the merits. And win out he did ! 

During the world war at the request of the 
Government Mr. Duke formed and headed a to- 
bacco committee. It was composed of the presidents 
of various tobacco concerns. Among the members 
was a splendid citizen of the Old Dominion who 
for years had been a prominent “so-called” inde- 
pendent tobacconist and so a conspicuous competi- 
tor of Mr. Duke. The two met for the first time 


88 


The Duke Endowment 


when the committee assembled in Washington. 
There were also present representatives of the 
Army and Navy and they complained bitterly that 
every little tobacconist in America thought the 
Government should buy his products. Mr. Duke 
quietly remarked that he would never advise the 
Government to ignore the small concerns. On the 
instant this Virginia gentleman was up and across 
the room, saying to Mr. Duke, “There’s my hand. 
Sir, I have been wrong about you all this time.” I 
never saw a more dramatic scene. The two became 
staunch friends and admirers, and the former ad- 
versary is now outspoken in his declaration that 
Mr. Duke was one of the finest and fairest men that 
ever lived. 

Lastly, I would have you know that Mr. Duke 
believed devoutly in God and the Future Life. His 
faith was simple and sincere. During his last illness 
I remarked to him how I wished that a thousand 
years hence we might know how the Endowment 
was faring. He said he had no doubt whatever we 
would know and understand, that he could not con- 
ceive man was but born to die. 

No one then realized that the time of his de- 
parture was at hand. But soon he passed peacefully 
into the Great Beyond and became a part of the 
Ages. 


Address of William R. Perkins 89 

Verily, a workman that needeth not to be 
ashamed, he rests from his labors, but his deeds 
abide to bless. And among them shines the En- 
dowment, an enduring lighthouse of humanity 
which will forever send forth its beams of loving 
helpfulness across life’s storm-tossed sea. 

I thank you. 

[The foregoing address was delivered before The Sphex Club 
at Lynchburg, Va., October 11, 1929.] 







UNIVERSITY OF FLORIDA 



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